MWW Automotive Reports Financial Results for Fiscal Year 2012
HOWELL, Mich., Jan. 15, 2013 /PRNewswire/ -- MWW Automotive Group (OTCQB: MWWC), a global automotive firm providing OE manufacturing of accessories and complete logistics services to many of the world's leading automotive and industrial manufacturers, issued today its financial report for the Fiscal Year 2012, ending on September 30, 2012. The full text of the Company's audited Annual 10K Report can be reviewed on the Company's web site at www.mwwautomotive.com or at the SEC website www.sec.gov.
"The last twelve months have been a crucial and complex year in MWW's business history, dealing with the consequences of the loss of our largest Toyota customers moving their accessory business back to Japan and Toyota Motor Services," states Chuck Pinkerton, CEO of MWW Automotive. "These customers represented the majority of our revenues for many years. Accordingly, our income decreased further during 2012 in comparison to 2011, although we were able to come close to meeting our revised projections. We have aggressively reacted to these changing market conditions and have reorganized the Company, so it would not only help us to survive these difficult times, but also re-focus on the core strength of MWW. Restructuring the company and revising its capitalization, rebuilding a strong roster of new major clients and expanding into different industries was the focus during 2012."
Mr. Pinkerton continues: "Based on our track record for high-quality OE production and customer satisfaction, we are now taking advantage of the increasing demand by large manufacturers for smaller, but more frequent production runs, a core competency that we have been focusing on over the last few years. We have been able to further reduce our overhead, while at the same time expanding our production capacity and secure a substantial amount of new business with new large customers in the automotive market as well as in the industrial machinery markets. During 2012 we still experienced significant delays with the launch of several of our new projects, especially with our new industrial client. Consequently we still generated limited revenues during FY 2012. With several of the new programs from our major clients now in production, we are confident that beginning in Q2 of 2013, revenues will start to increase again, with a moderate increase already expected during Q1 2013. We hope that our expected improving financial performance, combined with the reduced need for unfavorable financings and the appropriate marketing campaigns going forward, should have a positive impact on MWW's share price."
COMPARISON OF THE YEAR ENDED SEPTEMBER 30, 2012 TO THE YEAR ENDED SEPTEMBER 30, 2011 REVENUES
Net revenues were approximately $790.211 for the year ended September 30, 2012. Our revenues decreased $1.1 Million from the year ended September 30, 2011. This decrease is attributable to the fact that during 2011 we lost our largest customer, Toyota, who represented a majority of our total revenues. Since then we have been focused on restructuring our entire organization, reviving product selection, re-focusing on our core business and acquiring new customers in the automotive as well as in the commercial industries.
In an effort to return the company to profitability, we have reduced operating expenses without sacrificing production capacity and/or quality. Selling, general, and administrative expenses were $1,413,139 in 2012 compared to $1,712,760 during 2011. The decrease of $299,620 in costs is attributable to management's stringent efforts to reduce overhead costs while further streamlining operations.
Reconciling our net loss to cash we produced a net loss of $515,077. While the loss attributable to the Company is reported at $11,116,725, the loss from operations was $1,723,232. The largest positions of the loss attributable to Company and operations consists of several large NON-CASH positions, such as the change in derivative liability, change in operating assets and liabilities, non cash interest and other non-cash items. Based on significant cost-down exercises and the streamlining of several crucial processes and positions throughout the company, reconciling our net loss to cash produced a loss of $515,077. With the anticipated increase in revenue and improving cash flow, beginning in Q2 of 2013, there should be a decreasing need for additional unfavorable financing and accordingly a positive impact on the company's share price. Please see a detailed breakdown in our 10K financial filings with the SEC.
About MWW Automotive Group (MWW)
The MWW Automotive Group's (OTCQB: MWWC) administrative offices are located in Howell, Michigan, with a 40,000 square foot Class A manufacturing and logistics facility in Baroda, Michigan for the production of high quality OE automotive and industrial products. MWW delivers its products and Class A painting, assembly and logistics services directly to major US and Foreign automobile manufacturers' Vehicle Processing Centres (VPC), leading edge show car and performance accessory design firms, and/or assembly lines in North America. MWW's industrial products are delivered directly to the industrial manufacturers for installation in their facilities. MWW provides substantial added value to the sale of vehicles and industrial products for leading international automobile and industrial manufacturers such as Toyota, Chevrolet, Hyundai, Kia Motors, MAZDA, GM, Ford, FIVE AXIS and their strategic partners ROUSH Performance and Polytec/FOHA. For more information visit www.mwwautomotive.com or e-mail firstname.lastname@example.org
Safe Harbor Statement: Certain statements in this press release that are not historical facts are "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements may be identified by the use words such as "anticipate," "believe," "expect," "future," "may," "will," "would," "should," "plan," "projected," "intend," and similar expressions. Such forward-looking statements, involve known and unknown risks, uncertainties and other factors that may cause the actual results, performance or achievements to be materially different from those expressed or implied by such forward-looking statements. The Company's future operating results are dependent upon many factors, including but not limited to the Company's ability to: (i) obtain sufficient capital or a strategic business arrangement to fund its expansion plans; (ii) build the management and human resources and infrastructure necessary to support the growth of its business; (iii) competitive factors and developments beyond the Company's control; and (iv) other risk factors discussed in the Company's periodic filings with the Securities and Exchange Commission, which are available for review at www.sec.gov under "Search for Company Filings."
SOURCE MWW Automotive Group